NewPage buys Domtar coated groundwood lines

Miamisburg, OH-based NewPage Corp. has agreed to purchase Domtar Corp.'s coated ground wood paper product lines and book of business. The purchase follows Domtar's decision to exit this business and close its Columbus, MS, paper mill.

The purchase will include the coated groundwood paper book of business, the Choctaw®, Saturn® and JupiterTM brands, and the coated groundwood product inventory remaining after the Columbus mill closes.

"With Domtar's decision to permanently close its Columbus mill and exit the coated groundwood product sector, we will be working closely with Domtar to ensure that the immediate needs of their customers are met without any disruption of service," said Tom Curley, NewPage president and CEO.

NewPage also recently announced it had sold its 2.7-MW hydroelectric facility in Kimberly, WI, to Kaukauna Utilities for $6.1 million. However, Nova Scotia Power Inc. (NSPI) and NewPage Port Hawkesbury Corp. (NewPage) plan to develop a new 60- MW biomass co-generation facility. NSPI will invest $200 million and NewPage will build and operate the plant and supply the fuel. The targeted start-up is late 2012.

Meanwhile, Domtar has also sold, for $C80 million and a 19% interest, its sawmill business to a new company called Eacom Timber Corp. whose CEO is Rick Doman, the former head of Doman Industries Ltd., now Western Forest Products, Inc. Eacom will be based in Montreal.

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